Having a working motor vehicle is not a luxury. It is a basic necessity for many people in Texas. Especially if you live outside of town, you need reliable transportation to provide for your family, work a job and take care of basic needs. Many drivers invest a significant portion of their monthly income into vehicle maintenance and insurance.

Your vehicle is likely one of your most valuable possessions, but it costs so much that you may have had to finance the purchase. If you have a vehicle loan, missing a couple of payments could potentially lead to repossession of the vehicle by the lender.

A Chapter 13 bankruptcy can help those worried that they could soon lose their transportation to repossession efforts.

How Chapter 13 bankruptcy helps

In many cases, companies that finance vehicle purchases will not disclose their intent to repossess a vehicle ahead of time. Unless your contract dictates that they must give you advance notice, they will likely try to repossess it without warning you first, since many people try to hide the vehicles subject to repossession.

Although some people can successfully get their vehicles back by filing bankruptcy after repossession, it is much easier to avoid repossession than to reverse it afterward. As soon as you file for Chapter 13 bankruptcy, the automatic stay from the courts stops collection activity. That includes the repossession of your vehicle.

Then, while your bankruptcy is in progress, you are in a position to renegotiate secured loans with your creditors. You may be able to defer repaying those missed payments, increase the length of the repayment period, reduce the interest rate or otherwise negotiate terms that make keeping your vehicle financially feasible.

Discharging your debts will make balancing your budget easier

Once you have filled the requirements for your Chapter 13 bankruptcy filing, the courts will discharge the remaining balance on your unsecured debts. When you don't have to worry about making minimum payments on four different credit cards, paying your vehicle loan may be easier.

If keeping your vehicle is a top priority, then Chapter 13 bankruptcy could help preserve the investment you have made in your vehicle so far.